In force
Saudi Trade Names Law
نظام الأسماء التجارية
The Trade Names Law of Saudi Arabia. This page presents the official Arabic text of each article with plain-English explanations for residents and businesses.
- Articles
- 23
- In force
- 23
- Amended
- 0
- Issued
- 19/3/1446 AH
Issued by: مرسوم ملكي رقم (م/83) وتاريخ 1446/3/19هـ · قرار مجلس الوزراء رقم (237) وتاريخ 1446/3/14هـ
Each article shows the official Arabic text, which is the only legally binding version, followed by our plain-English explanation.
Browse Trade Names Law by topic
General Provisions on Trade Names7 articlesReserving and Registering a Trade Name2 articlesConditions for Forming a Trade Name3 articlesProhibited Trade Names1 articleProtection of the Trade Name1 articleAmending and Disposing of a Trade Name3 articlesCancelling and Striking Off a Trade Name2 articlesTrade Name Violations and Penalties6 articles
Articles of the Saudi Trade Names Law
الفصل الأول: أحكام عامةArticles 1–2
- Article 1The article sets out the meanings of the key terms in the Trade Names Law, such as trade name, merchant, Commercial Register, Registrar, Ministry and Implementing Regulations.
- Article 2The article states that the Law aims to enhance confidence in the business environment by regulating the reservation of trade names, their entry, enhancing their value and protecting them.
الفصل الثاني: أحكام الاسم التجاري وحجزه وقيدهArticles 3–11
- Article 3The article requires every merchant to adopt a trade name and enter it in the Commercial Register, and permits temporary reservation of the name with the Registrar without entering it, as the Implementing Regulations provide.
- Article 4The article states that a trade name is taken from the merchant's personal name or a distinctive name, consists of Arabic words, letters or numbers, and may be in a language other than Arabic, with details left to the Implementing Regulations.
- Article 5The article regulates the application to reserve or enter a trade name: submission to the Registrar, a decision within ten days, publication, priority to the earlier applicant, and a reasoned refusal with a grievance within sixty days.
- Article 6The article prohibits others from using a trade name reserved or entered for a merchant, and gives the merchant whose name is entered the right to claim compensation before the competent court.
- Article 7The article prohibits reserving or entering a trade name that is contrary to public order or morals, misleading or legally prohibited, including names similar to existing names or marks or with political, military or religious content.
- Article 8The article requires the merchant to display his trade name on the front of his place of business according to its nature, and to put it on all his documents, correspondence and printed materials.
- Article 9The article permits an entered merchant to modify his trade name after meeting the conditions and procedures, with the modification taking effect from its entry in the Commercial Register and without affecting earlier rights and obligations.
- Article 10The article permits the merchant to deal with his entered trade name independently of the business, and the dealing takes effect only after it is entered and published in the Commercial Register.
- Article 11The rights and obligations that arose under a trade name pass with the business to the person to whom it passes unless otherwise agreed, while predecessor and successor remain jointly liable to creditors.
الفصل الثالث: الإلغاء والشطب وحالاتهArticles 12–13
- Article 12The Registrar cancels the reservation of a trade name, on its own motion or at the request of an interested party, if it is unlawful, misleading or prohibited, or if the reservation period expires without extension.
- Article 13The article sets out the cases for striking off the entry of a trade name, requires a replacement name to be entered where the strike-off is for breach or by final decision, and requires the name to be reserved for a merchant whose entry in the Register is struck off.
الفصل الرابع: المخالفاتArticles 14–18
- Article 14The article punishes violations of the Trade Names Law with a fine of up to SAR 50,000, which may be doubled for repetition within three years, taking account of the seriousness of the violation and the size of the business.
- Article 15The article assigns enforcement of the law's violations to employees named by the Minister who hold law-enforcement status, and lets the Minister issue rules for their work and for rewards for detecting violations.
- Article 16The article provides for one or more committees formed by Ministerial decision to consider violations and impose penalties, and lets the Minister specify violations for which the penalty may be imposed directly.
- Article 17The article allows the committee, once a merchant's violation is established, to warn the merchant or require preventive or corrective steps, in addition to the penalty or instead of it.
- Article 18The article gives anyone against whom a decision is issued under the law the right to challenge it before the competent court within 30 days from the date of notification.
الفصل الخامس: أحكام ختاميةArticles 19–23
- Article 19The article lets the Minister of Commerce use public or private entities to perform the Registrar's duties and assign some of those duties to them.
- Article 20The article provides that the Ministry of Commerce encourages the use of Arabic in trade names through a platform for Arabic language experts, where their details are registered and their work is shown to the public.
- Article 21The article refers to the Implementing Regulations the setting of the financial consideration for the services provided by the Registrar in implementing the Trade Names Law.
- Article 22The article requires the Minister of Commerce to issue the Implementing Regulations within 180 days of the law's publication in the Official Gazette, to take effect from the date the law takes effect.
- Article 23The article provides that this law replaces the Trade Names Law issued by Royal Decree No. M/15 of 1420 AH, and takes effect 180 days after its publication.
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